EX-99.1 2 d530183dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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ACTIVE Network Reports First Quarter 2013 Financial Results

 

   

First Quarter Revenue Increases 12% to $106.0 Million

 

   

Record First Quarter Adjusted EBITDA of $6.1 Million

 

   

Operating Cash Flow of $60.2 Million for the Quarter

SAN DIEGO, CALIF. – May 2, 2013ACTIVE Network (NYSE: ACTV), the leader in cloud-based activity and participant management™ solutions, today announced its financial results for the first quarter ended March 31, 2013.

Q1 2013 Financial Highlights:

(All comparisons are made to the first quarter of 2012)

 

   

Total net revenue up 12% to $106.0 million.

 

   

Technology revenue increased 13% and constituted 90%, or $95.0 million, of total net revenue.

 

   

Net registration revenue increased 11% to $70.5 million - number of registrations flat; revenue per registration up 11%.

 

   

Marketing services revenue constituted 10%, or $11.0 million, of total net revenue.

 

   

Gross margins increased 230 basis points as a % of revenue to 52.6%.

 

   

Net loss was $15.2 million compared to net loss of $20.3 million.

 

   

Adjusted EBITDA, a non-GAAP financial measure, was $6.1 million.

“Our strong first quarter 2013 revenues and bottom line results demonstrate the Company’s ability to scale our infrastructure and deliver gross margin accretion,” said Scott Mendel, CFO of ACTIVE Network. “Cash flow for the quarter was very strong, reflecting our top line growth and following typical seasonal patterns. We remain focused on driving operational efficiency to capitalize on our large market opportunity and generate long-term growth.”

Q1 2013 Key Business Highlights

 

   

Marquee customer highlights included wins from YMCA Los Angeles, New Jersey Department of Environmental Protection, Two Cities Marathon, and Woodlands Marathon.

 

   

ACTIVE Network renewed exclusive multi-year contracts with well-known clients including Gartner, IRONMAN, Georgia State Parks and Recreation.Gov, which services the National Park Service, the National Forest Service, Bureau of Land Management, and the Army Corps of Engineers.

 

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ACTIVE Network announced that the YMCA of Greater San Antonio, has extended their relationship and is migrating from Class® software to ACTIVE Net™, a cloud-based solution that can help improve operational efficiency, engage members and drive participation by offering better online access to activities.

 

   

ACTIVE Network launched ACTIVE On-Site, a mobile app and branded credit card reader to help race directors simplify and speed up the on-site check-in, registration and payment process.

Financial Outlook

Second Quarter 2013 - For the second quarter of 2013, ACTIVE Network expects total revenue to be in the range of $128 million to $133 million. Registrations are expected to grow approximately 3% to 8% and revenue per registration is expected to grow approximately 3% to 5% compared to the same period in the prior year. The Company expects a net loss of $10 million to $3 million and Adjusted EBITDA in the range of $18 million to $21 million. Second quarter guidance includes the estimated impact of one-time charges associated with the recent management change.

Full Year 2013 - Due to the recent management changes, ACTIVE Network is prioritizing and accelerating its strategic and financial goals for the remainder of the year. Accordingly, the Company will not be providing full year 2013 guidance at this time, but expects to do so once it has had an opportunity to align its financial projections with its go-forward strategy.

Conference Call Information

ACTIVE Network will host a conference call to discuss first quarter 2013 results today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number is (877) 546-5019 for domestic participants and (857) 244-7551 for international participants. A live webcast of the conference call will also be available and can be accessed within the investor relations section of the ACTIVE Network corporate website at: http://investors.ACTIVEnetwork.com.

A replay of the call will be available starting at 6:30 p.m. Eastern Time (3:30 p.m. Pacific Time) on May 2, 2013 through 11:59 p.m. Eastern Time (8:59 p.m. Pacific Time) on May 9, 2013. To listen to the replay, dial (888) 286-8010 or (617) 801-6888 outside of the United States and use the passcode 41574038. The replay will also be available via webcast at:

http://investors.activenetwork.com/.

About ACTIVE Network

ACTIVE Network (NYSE: ACTV) is on a mission to make the world a more active place. With deep expertise in activity and participant management™, our ACTIVE Works® cloud technology helps organizations transform and grow their businesses. We do this through technology solutions that power the world’s activities, as well as online destinations such as ACTIVE.com® that connect people with the things they love to do. Serving over 50,000 global business customers and driving over 80 million transactions annually, we help organizations get participants, manage their events and build

 

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communities. ACTIVE Network is headquartered in San Diego, California and has over 30 offices worldwide. Learn more at ACTIVEnetwork.com or ACTIVE.com and engage with us on Twitter @ACTIVEnetwork, @ACTIVE and on Facebook.

Note With Respect to Non-GAAP Financial Measures

In addition to using GAAP financial results, the Company’s management measures and reports non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share. The most directly comparable GAAP financial results for these non-GAAP financial measures are Net income (loss), Net income (loss) and Net income (loss) per share, respectively. Management uses these non-GAAP financial measures to evaluate the Company’s performance and operations. Management also uses these non-GAAP financial measures for business planning, to evaluate acquisition opportunities and as a measurement to create incentives and to compensate the Company’s management team. In addition, management believes the exclusion or inclusion of certain amounts in calculating these non-GAAP financial measures can provide a useful measure to investors for period-to-period comparisons. These non-GAAP financial measures, however, should be used in addition to, and in conjunction with, the Company’s financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company’s results with other companies’ non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results below for a reconciliation of our GAAP to non-GAAP financial measures.

Forward-Looking Statements

The Active Network, Inc. cautions you that the statements included in this press release that are not a description of historical facts are forward-looking statements within the meaning of the federal securities laws. Any such statements are subject to substantial risks and uncertainties, including the Company’s ability to generate revenue and control expenses in order to achieve and maintain profitability, the Company’s ability to maintain an adequate rate of growth and improve its operations, including growing its registrations and revenue from registrations, the Company’s ability to successfully manage its acquisitions and investments in businesses, applications and technologies, the effects of the Company’s recent management change and the final terms of the separation agreements, if any, with the Company’s former officers and the associated impact on our financial results, as well as the other risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which are expressly incorporated herein by reference, and other factors as may periodically be described from time to time in the reports it files with the Securities and Exchange Commission. As a result of these risks and uncertainties, the Company’s actual results may differ materially from those expressed in any forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

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© 2013 The Active Network, Inc. All rights reserved. ACTIVE.com, ACTIVE Works and StarCite are registered trademarks of The Active Network, Inc. ACTIVE Network is a trademark of The Active Network, Inc. All other trademarks are the property of their respective owners.

 

Media Contact:    Investor Contact:

Gwen Dille, ACTIVE Network

Gwen.Dille@ACTIVEnetwork.com

1-858-964-7701

  

Brinlea Johnson, The Blueshirt Group

Brinlea@blueshirtrgroup.com

1-212-331-8424

 

Allise Furlani, The Blueshirt Group

allise@blueshirtgroup.com

212-331-8433

 

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THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Net Revenue:

    

Technology revenue

   $ 94,990      $ 84,120   

Marketing services revenue

     11,021        10,318   
  

 

 

   

 

 

 

Total net revenue

     106,011        94,438   

Cost of net revenue:

    

Cost of technology revenue

     49,046        45,655   

Cost of marketing services revenue

     1,191        1,316   
  

 

 

   

 

 

 

Total cost of net revenue

     50,237        46,971   
  

 

 

   

 

 

 

Gross profit

     55,774        47,467   

Operating expenses:

    

Sales and marketing

     26,826        25,024   

Research and development

     21,176        21,209   

General and administrative

     16,508        16,544   

Amortization of intangibles

     4,454        5,692   
  

 

 

   

 

 

 

Total operating expenses

     68,964        68,469   
  

 

 

   

 

 

 

Loss from operations

     (13,190     (21,002

Interest income

     15        25   

Interest expense

     (182     (151

Other income (expense), net

     (553     1,401   
  

 

 

   

 

 

 

Loss before provision for income taxes

     (13,910     (19,727

Provision for income taxes

     1,318        611   
  

 

 

   

 

 

 

Net loss

   $ (15,228   $ (20,338
  

 

 

   

 

 

 

Net loss per share:

    

Basic and diluted

   $ (0.25   $ (0.36
  

 

 

   

 

 

 

Weighted-average shares used to compute net loss per share:

    

Basic and diluted

     60,764        56,982   
  

 

 

   

 

 

 


THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

     March 31,     December 31,  
     2013     2012  
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 107,039      $ 58,493   

Restricted cash

     422        1,145   

Registration receivable

     44,750        16,260   

Accounts receivable, net

     42,863        51,363   

Inventories

     4,298        4,809   

Prepaid expenses and other current assets

     11,084        8,922   
  

 

 

   

 

 

 

Total current assets

     210,456        140,992   

Property and equipment, net

     40,082        41,236   

Software development costs, net

     50,636        51,151   

Goodwill

     243,189        243,716   

Intangible assets, net

     56,974        62,806   

Other long-term assets

     2,508        2,569   
  

 

 

   

 

 

 

Total assets

   $ 603,845      $ 542,470   
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 5,997      $ 8,174   

Registration fees payable

     124,254        61,272   

Accrued expenses

     43,581        38,865   

Deferred revenue

     74,815        66,846   

Capital lease obligations, current portion

     2,670        2,774   

Other current liabilities

     3,961        4,373   
  

 

 

   

 

 

 

Total current liabilities

     255,278        182,304   

Capital lease obligations, net of current portion

     1,805        2,462   

Other long-term liabilities

     5,864        6,192   

Deferred tax liability

     19,945        19,065   
  

 

 

   

 

 

 

Total liabilities

     282,892        210,023   

Stockholders’ equity:

    

Common stock

     62        62   

Treasury stock

     (11,959     (11,959

Additional paid-in capital

     657,981        653,694   

Accumulated other comprehensive income

     8,381        8,934   

Accumulated deficit

     (333,512     (318,284
  

 

 

   

 

 

 

Total stockholders’ equity

     320,953        332,447   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 603,845      $ 542,470   
  

 

 

   

 

 

 


THE ACTIVE NETWORK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Operating activities

    

Net loss

   $ (15,228   $ (20,338

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization of property and equipment

     9,744        7,819   

Amortization of intangible assets

     5,655        7,157   

Stock-based compensation expense

     3,926        3,029   

Deferred income taxes

     898        640   

Other non-cash items

     (436     (1,442

Change in operating assets and liabilities, net of effect of acquisitions:

    

Restricted cash

     723        —     

Registration receivable

     (28,490     (23,609

Accounts receivable

     8,525        5,090   

Inventories

     511        (1,418

Prepaid expenses and other assets

     (2,118     (995

Accounts payable and accrued expenses

     5,801        2,652   

Registration fees payable

     62,982        37,769   

Deferred revenue

     8,114        11,319   

Other liabilities

     (390     802   
  

 

 

   

 

 

 

Net cash provided by operating activities

     60,217        28,475   

Investing activities

    

Purchases of property and equipment

     (6,130     (5,849

Capitalized software development

     (5,388     (5,285

Cash paid for acquisitions, net of cash acquired

     —          (38,037
  

 

 

   

 

 

 

Net cash used in investing activities

     (11,518     (49,171

Financing activities

    

Proceeds from issuance of common stock and repurchase of unvested common stock

     274        3,722   

Payments on capital lease obligations

     (760     (1,561

Proceeds (repayment) of long-term debt

     —          5,000   
  

 

 

   

 

 

 

Net cash provided by financing activities

     (486     7,161   

Effect of exchange rates on cash

     333        (150
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     48,546        (13,685

Cash and cash equivalents at beginning of period

     58,493        108,699   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 107,039      $ 95,014   
  

 

 

   

 

 

 


THE ACTIVE NETWORK, INC.

SUPPLEMENTARY DATA

(In thousands, except revenue per registration)

(Unaudited)

Operational Data:

 

      Three Months Ended
March 31,
     %
change
 
     2013      2012     

Net registration revenue

     70,545         63,519         11

Registrations

     18,138         18,223         —     

Net registration revenue per registration

   $ 3.89       $ 3.49         11

GAAP and Non-GAAP Gross Profit Margin:

 

      Three Months Ended
March 31,
     % or
bps
change
 
     2013      2012     

Total net revenue

   $ 106,011       $ 94,438         12%   

GAAP gross profit

   $ 55,774       $ 47,467         18%   

Add back: stock-based compensation

     165         60      

Add back: depreciation & amortization

     9,470         7,718      
  

 

 

    

 

 

    

Non-GAAP gross profit

   $ 65,409       $ 55,245         18%   

Gross profit margin:

        

GAAP gross profit margin

     52.6%         50.3%         230 bps   

Non-GAAP gross profit margin

     61.7%         58.5%         320 bps   

Stock-Based Compensation Expense:

 

      Three Months Ended
March 31,
 
     2013      2012  

Cost of net revenue

   $ 165       $ 60   

Sales and marketing

     750         696   

Research and development

     599         452   

General and administrative

     2,412         1,821   
  

 

 

    

 

 

 

Total stock-based compensation

   $ 3,926       $ 3,029   
  

 

 

    

 

 

 


THE ACTIVE NETWORK, INC.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(In thousands, except per share data)

(Unaudited)

Non-GAAP Earnings:

 

      Three Months Ended
March 31,
 
     2013     2012  

Non-GAAP net loss:

    

GAAP net loss

   $ (15,228   $ (20,338

Add back: stock-based compensation

     3,926        3,029   

Add back: amortization of intangibles

     5,655        7,157   

Income tax effect

     (3,353     (3,565
  

 

 

   

 

 

 

Non-GAAP net loss

   $ (9,000   $ (13,717
  

 

 

   

 

 

 

Weighted-average shares used to compute net loss per share:

    

Basic and diluted

     60,764        56,982   
  

 

 

   

 

 

 

Non-GAAP net loss per share:

    

Basic and diluted

   $ (0.15   $ (0.24
  

 

 

   

 

 

 

Adjusted EBITDA:

 

      Three Months Ended
March 31,
 
     2013     2012  

Net loss

   $ (15,228   $ (20,338

Add back: interest expense, net

     167        126   

Add back: provision for income taxes

     1,318        611   

Add back: depreciation and amortization

     15,399        14,976   

Add back: stock-based compensation

     3,926        3,029   

Add back: other (income) expense, net

     553        (1,401
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 6,135      $ (2,997
  

 

 

   

 

 

 


THE ACTIVE NETWORK, INC.

FUTURE PERFORMANCE—2ND QUARTER 2013 OUTLOOK

(In thousands, except per share data)

 

     Estimated  
     2nd Quarter 2013  
     Low End     High End  

Reconciliation of GAAP to Non-GAAP Results:

    

Net loss

   $ (10,000   $ (3,000

Interest, taxes and other

     2,000        1,000   

Depreciation and amortization

     16,000        15,000   

Stock-based compensation

     10,000        8,000   
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 18,000      $ 21,000   
  

 

 

   

 

 

 

Net loss per share:

    

Net loss

   $ (10,000   $ (3,000
  

 

 

   

 

 

 

Weighted average shares—basic and diluted

     62,000        62,000   

Net loss per share—basic and diluted

   $ (0.16   $ (0.05
  

 

 

   

 

 

 

Non-GAAP net income (loss):

    

GAAP net loss

   $ (10,000   $ (3,000

Add back: stock-based compensation

     10,000        8,000   

Add back: amortization of intangibles

     5,500        5,000   

Income tax effect

     (5,400     (4,600
  

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ 100      $ 5,400   
  

 

 

   

 

 

 

Weighted average shares—basic

     62,000        62,000   

Weighted average shares—diluted

     64,000        64,000   

Non-GAAP net income per share—basic

   $ 0.00      $ 0.09   
  

 

 

   

 

 

 

Non-GAAP net income per share—diluted

   $ 0.00      $ 0.08